The Mexican Peso nears a two-year low against the USD, driven by softer US inflation data and technical momentum below key moving averages.
The USD/MXN pair declined for the 14th consecutive session, dipping 0.08% to trade below 17.05 as the Mexican Peso hovered near a 24-month low of 17.01. The move follows weaker-than-expected US inflation data, which has weighed on the dollar’s strength relative to emerging-market currencies.
Technical indicators show the pair breaking below its 50- and 100-day Simple Moving Averages (SMAs) in late July, accelerating a downtrend toward yearly lows. The Relative Strength Index (RSI) suggests the decline may be losing momentum, with narrowing session-to-session moves signaling hesitation among traders.
A break below 17.00 could target May’s 2024 low of 16.52, followed by April’s low at 16.26. Conversely, a rebound above the 50-day SMA at 17.38 may fuel a rally toward 17.50.